SaaS Entrepreneur

EXCERPT FROM CHAPTER ONE

SaaS Entrepreneur: The Definitive Guide
to Succeeding in Your Cloud Application Business

SaaS—The Software is the Social Network

In many respects, this is most important chapter in the book. If you decide to read nothing else, read this chapter thoroughly and implement its suggestions as soon as possible. Failure to do so will first damage, then destroy, your ability to compete successfully in SaaS.

When pundits and analysts argue over what is the single most important point of differentiation between SaaS and on-premise, licensed software, they usually point to:

There are other issues and technologies that are discussed: multi-tenancy; virtualization; agile development. The ‘cloud.’

While these can indeed be differentiators, they miss the crucial point of SaaS. And that is that SaaS systems, by their very nature, create communities of customers who can collectively interact with each other and your company on a 24/7/52. In SaaS, the application is the social network. But to benefit from it, you must prepare to manage and leverage the application network to the maximum extent.

While these can indeed be differentiators, they miss the crucial point of SaaS. And that is that SaaS systems, by their very nature, create communities of customers who can collectively interact with each other and your company on a 24/7/52. In SaaS, the application is the social network. But to benefit from it, you must prepare to manage and leverage the application network to the maximum extent.

What Creates the Application Network?

What comprises the application network? Two inherent elements of SaaS:

The first is that if your SaaS system is properly architected, you should be able to monitor, capture and analyze every aspect of a subscriber’s interaction with your product. This includes keystrokes, functions accessed, functions not accessed, browser usage, etc.

The second is that because SaaS applications inherently concentrate subscribers with a common set of interests in one virtual ‘place,’ the foundation for a community is already in place. If you provide the right infrastructure, your community of customers will grow, thrive and transmit information about your product and their usage of it to your company on a constant basis at an ever increasing bandwidth.


Read the rest of this chapter in SaaS Entrepreneur: The Definitive Guide to Succeeding in Your Cloud Application Business, 2nd Edition

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